Crypto Council Urges SEC to Streamline Novel ETP Approvals

• CCI encourages the SEC to make the approval process for Novel ETPs more efficient in terms of timing and regulation.
• The organization also calls for parity of tax treatment, disclosure requirements, and confidentiality for novel ETPs.

Crypto Council for Innovation is advocating for a modernized framework for ETP by the Securities and Exchange Commission. CCI is calling for more clarity and predictability in the process of obtaining approvals for innovative ETPs. The suggestions from CCI were presented on August 31 concerning the framework for novel ETFs proposed by the SEC. The framework involves products that relate to crypto assets, blockchain opportunities, and event contracts. CCI is advocating for the same level of efficiency in the process of gaining approval for non-ETF products as that provided for qualifying ETFs.

CCI Pushes for Faster ETP Approvals

Existing regulations on ETFs may provide a blueprint for expanding the scope of reform to ETPs, according to CCI. For instance, Rule 6c-11 allows qualifying ETFs to conduct their activities without the need to receive exemptive orders on a case-by-case basis from the SEC. Similarly, Rule 485 allows ETP sponsors to file new funds using post-effective amendments with specific automatic effectiveness dates.